Health Affairs November 18, 2024
John Williford, Stephen Rosenthal, David Kim

In health care’s ongoing shift toward value-based payment and care delivery models, one of the most expansive innovations yet is the hospital global budget model. By aligning economic incentives with population health outcomes rather than patient volume, the global budget model offers perhaps the most forward-looking and boldest new approach to hospital financing. It is a key example of how advanced payment structures can offer a way to stabilize hospital finances, reduce unnecessary use, and focus on improving the health of entire populations.

The global budget model is a core component of two major value-based payment initiatives currently being deployed: the States Advancing All-Payer Health Equity Approaches and Development (AHEAD) model from the Center for Medicare and Medicaid Innovation (the...

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Topics: Govt Agencies, Health System / Hospital, Provider, States
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